1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Margaret [11]
3 years ago
7

Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $13,800 ($1,150/month) in advance

on October 1.
Required:
1. Record the adjusting entries on December 31.
2. Record the payment of rent in advance of october 1.
3. Calculate the year-end adjusted balances of prepaid rent and rent expense (assuming the balance of Prepaid Rent at the beginning of the year is $0).
Business
1 answer:
tigry1 [53]3 years ago
8 0

Answer:

1.

Dec 31    Rent expense                   $3450 Dr

                  Prepaid Rent                       $3450 Cr

2.

Oct 1     Prepaid Rent                        $13800 Dr

                  Cash                                       $13800 Cr

3.

Year end balances at 31 December:

Rent Expense = $3450

Prepaid Rent = $10350

Explanation:

Assumption: The year end for the business in on 31 December.

1.

The rent is paid in advance thus it is an asset. On 31 December the adjusting entry will be made under the accrual principle to match the current period's rent expense and record it in the period to which it belongs to. Thus we will credit the rent expense for 3 months i.e. October, November and December. We will credit the asset account that is Prepaid Rent.

2.

The prepayment of rent is creating an asset account in the title of prepaid rent. The entry would be to record the asset prepaid rent by the full amount of the rent prepaid and credit the other asset account through which the payment is being made.

3.

The adjusted year end balance for rent expense will be the rent expense paid for this period that is $1150 * 3 = 3450

The balance in the prepaid rent account after adjusting the rent expense will be,

Prepaid rent = 13800 - 3450 = $10350

You might be interested in
Which of the following scenarios describes an offer?a.Raoul asks Wendy if she would be willing to sell her first-edition copy of
storchak [24]

Answer: A -Raoul asks Wendy if she would be willing to sell her first-edition copy of War and Peace.

Explanation: An offer is a legal term used in a contract. An offer is made by an intending buyer to an intending seller regarding a product or service.

The offer is a legal question that is asked by a willing buyer if the seller of the product would consider selling it or not.

An offer can be accepted or declined by the person being made the offer.

6 0
3 years ago
When a line cook in a restaurant uses raw meat to cook a hamburger that becomes part of the restaurant's Super Burger Special, t
gulaghasi [49]

Answer:

Transformation process.

Explanation:

When a line cook in a restaurant uses raw meat to cook a hamburger that becomes part of the restaurant's Super Burger Special, the cook is taking part in a transformation process.

A transformation process can be defined as the capabilities possessed by an organization, which are then integrated into technology, internal processes, and management, for the singular purpose of converting inputs into outputs in order to meet the needs or requirements of their customers.

In this scenario, the cook uses raw meat as an input in the creation of an output, which is the restaurant's Super Burger Special.

7 0
3 years ago
Diners are served in a process with two resources. The first resource has a capacity of 1.1 diners per hour. The capacity of the
Firdavs [7]

The cycle time of this process for the firm is 2.89.

<h3>What is a Cycle Time?</h3>

This refers to the average time between the start of production of one unit and the start of production of the next unit of production

Cycle Time = Net time available to work / Customer demand

Cycle Time = 1.1 + 1.5 / 0.9

Cycle Time = 2.88888888889

Cycle Time = 2.89.

Therefore, the cycle time of this process for the firm is 2.89.

Read more about cycle time

<em>brainly.com/question/18802868</em>

#SPJ1

3 0
1 year ago
Why do marketers segment their markets and what are the basic criteria for doing so successfully?
Firlakuza [10]

Answer: enables marketers to tailor marketing mixes to meet the needs of particular population segments

Explanation:

Market segmentation enables marketers to tailor marketing mixes to meet the needs of particular population segments. Segmentation helps marketers identify consumer needs and preferences, areas of declining demand, and new marketing opportunities. the marketing strategy of almost all successful organizations.

8 0
2 years ago
Franktown meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the divid
Monica [59]

I guess the correct answer is $15.77

Franktown Meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the dividend will increase by 2% annually thereafter. One share of this stock be worth six years from now is $15.77 if the required rate of return is 14.5%

5 0
3 years ago
Other questions:
  • Piedmont Hotels is an all-equity company. Its stock has a beta of .94. The market risk premium is 7.5 percent and the risk-free
    12·1 answer
  • When Congress established the Federal Reserve in​ 1913, its main responsibility was
    5·1 answer
  • The payments made by a firm to repurchase shares of its outstanding stock from an individual investor in an attempt to eliminate
    7·1 answer
  • Cameron started his own photography business. He wants to write a good mission statement that explains his company's reason for
    8·1 answer
  • For which pairs of goods would most people likely have convex indifference curves
    11·1 answer
  • West Calder Fabrication is trying to decide which of the following four cargo ships that should be used to ship their products,
    9·1 answer
  • Which of the following is the term used to describe the institutional arbitrage of various securities, including stocks and opti
    14·1 answer
  • Jerome is an elderly man who lives with his nephew, Philip. Jerome is totally dependent on Philip’s support. Philip tells Jerome
    12·1 answer
  • Jim and Susan are both in good health and Jim has a reasonably secure career. Jim currently has an income of $70,000 and has 2 c
    13·1 answer
  • ______ allows employees to move from one job to another in an effort to relieve the boredom that is often associated with job sp
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!